UK-based financial software firm Misys has become the target of a second private equity bid, from CVC Capital Partners and ValueAct Capital, its largest shareholder.
The move follows a bid from Vista Equity Partners last month, which came hot on the heels of a proposed merger between Misys and Swiss software vendor Temenos.
The news of today's CVC and ValueAct bid sent Misys shares soaring in early trading, gaining over 20 pence to 335 pence.
CVC and ValueAct said they had "concluded an agreement to work together with a view to making a recommended joint cash offer for Misys", but they added that there was "no certainty" an offer would be made. Misys has confirmed the discussions.
Misys has formed a committee, independent of the board of directors, to consider all the proposals.
George O'Connor, an analyst at Panmure Gordon, said the new approach was likely an attempt to "shake things up" and to prompt Vista Equity Partners to raise its own bid, the Wall Street Journal reported.
However the financial value of Misys is being pegged very differently by the bidders. Some shareholders have questioned how long a Temenos merger would take to deliver financial benefits, prompting the private equity firms, reportedly, to make lower bids. The Temenos merger was reported as being worth nearly £2 billion, while Vista came in with a bid around £1.2 billion, but promised fast value creation. The CVC-ValueAct offer size is not known.
CVC and ValueAct have until 2 April to announce a definitive offer.